Sept 18 (Reuters) - American Express ( AXP ) unveiled

long-awaited upgrades to its U.S. Platinum cards on Thursday,

adding new perks worth over $3,500 annually while raising the

annual fee by $200.

The card refresh reflects a strategy AmEx has leaned on for

years. Banking on the affluence of its customer base, the credit

card giant routinely adds premium perks to justify its fee

hikes.

The move also comes as financial giants such as Citigroup ( C/PN )

are seeking inroads into the premium credit card space.

AmEx executives, however, said in July that its deep roots in

the segment will allow it to outpace rivals.

"We believe the refresh should serve as a long-term tailwind

for financial results," brokerage William Blair wrote in a note,

ahead of the upgrade.

AmEx's Platinum cards will now offer credits for dining via

restaurant reservation service Resy, purchases at lululemon and

taking Uber One memberships, as well as expanded hotel and

entertainment perks.

"We are giving our customers more than $3,500 of value

that's easy to access and far exceeds the annual fee," Howard

Grosfield, AmEx's group president of U.S. consumer services,

said in an interview.

Analysts say younger generations, which make up a

significant share of AmEx cardholders, are more comfortable

paying credit card fees, viewing them as subscription-like

products that deliver value through travel, dining and

entertainment experiences.

Platinum Business cardholders will also gain new credits for

Dell and Adobe purchases, a $600 hotel credit and up to $3,600

in additional statement credits for high spenders, AmEx said.

"We've seen strong demand for travel-related benefits like

hotel upgrades, late checkout and airport lounge access and know

card members will be excited," said Raymond Joabar, group

president of global commercial services.

The cards will now cost $895 annually, compared with $695

earlier.

(Reporting by Niket Nishant in Bengaluru)